Summary of CTO Realty Growth Q2 2026 Earnings Call

1Key Financial Results and Metrics

Core FFO: $18.4 million, up from $14.7 million year-over-year.

Core FFO per diluted share: $0.53, an increase of nearly 18% from $0.45.

AFFO: $19.1 million, up from $15.3 million year-over-year.

AFFO per diluted share: $0.55, compared to $0.47 previously.

Same Property NOI Growth: Increased by 10.1% for the quarter and 8.2% year-to-date.

Portfolio Occupancy: 95.4%, a 150 basis point increase year-over-year.

Total Debt: $660.8 million with a weighted average interest rate of 4.6%.

Liquidity: $131.8 million, including $107 million in undrawn commitments.

2Strategic Updates and Business Highlights

Leasing Activity: Executed 25 new leases, renewals, and extensions totaling 213,000 square feet with a positive cash rent spread of 6%.

Investment Activity: Acquired Gallery on the Parkway for $53.3 million and completed $90.7 million in property dispositions.

Structured Investments: Originated $96.4 million in preferred equity investments with initial yields of 12%.

Pipeline: A signed-not-open pipeline of $6.3 million represents 5.8% of annual cash-based rent, expected to contribute positively to earnings in 2026 and 2027.

3Forward Guidance and Outlook

Revised Core FFO Guidance: Increased to $2.09 - $2.13 per diluted share from $2.06 - $2.11.

Revised AFFO Guidance: Increased to $2.21 - $2.25 per diluted share from $2.19 - $2.24.

Investment Volume Guidance: Raised to $300 million - $400 million from $175 million - $250 million.

Same Property NOI Growth: Expected to moderate but still forecasted at 5% - 6% for the remainder of the year.

4Bad News, Challenges, or Points of Concern

Vacancy Issues: A tenant vacated 98,000 square feet at an Albuquerque property, impacting year-to-date same property NOI growth.

Moderation in Growth: Anticipated moderation in same property NOI growth due to tougher comparisons in the second half of the year.

Bad Debt Expense: Lower bad debt in Q3 2025 may create a tougher comp for future quarters.

5Notable Q&A Insights

Leasing Pipeline: The signed-not-open pipeline is expected to contribute evenly throughout 2027, with significant rent recognition anticipated.

Market Dynamics: The power center market is becoming more favorable for landlords, leading to increased pricing power.

Dispositions Strategy: The decision to sell certain properties was driven by favorable market conditions and the opportunity to recycle capital into higher-yielding investments.

Future Investments: The company is optimistic about sourcing new structured investments due to the current interest rate environment, which may create more opportunities for financing solutions. Overall, CTO Realty Growth reported strong financial performance in Q2 2026, driven by robust leasing activity and strategic investments, while also raising guidance for the year. However, the company faces challenges related to vacancy and potential moderation in growth metrics moving forward.